Stifel cuts Blink Charging stock price target to $1 from $2

Published 27/05/2025, 10:16
Stifel cuts Blink Charging stock price target to $1 from $2

On Tuesday, Stifel analysts revised their price target for Blink Charging Co. (NASDAQ:BLNK) to $1.00, down from the previous $2.00, while continuing to recommend a Hold rating on the stock. The adjustment comes after Blink Charging reported first-quarter 2025 earnings that fell short of both Stifel’s projections and the wider market consensus. The company’s revenue for the quarter did not meet expectations, prompting the analysts to reassess their outlook. According to InvestingPro data, the company’s revenue has declined by 30.11% over the last twelve months, with the stock currently trading at $0.72 and showing significant volatility with a beta of 3.34.

Despite the disappointing revenue figures, Blink Charging is reportedly making significant strides in reducing costs, including implementing workforce reductions. These efforts are part of the company’s strategy to navigate current market challenges. InvestingPro analysis reveals that while the company maintains a healthy current ratio of 2.15, indicating strong short-term liquidity, it is quickly burning through cash - one of several key insights available in the comprehensive Pro Research Report covering this and 1,400+ other US stocks.

The analysts noted that Blink Charging’s service segment is showing signs of strength, performing better than anticipated. This area of the business has been a positive highlight, surpassing estimates and indicating potential for the company’s future performance.

The decision to maintain the Hold rating reflects Stifel’s view that while Blink Charging is facing headwinds that impact its short-term financial results, the company’s cost management and service segment improvements provide some balance to the concerns raised by the lower-than-expected revenue.

Stifel’s revised price target represents a significant decrease and is indicative of the analysts’ cautious stance on the stock’s valuation amidst the current market conditions and the company’s recent performance. The new price target of $1.00 is a 50% reduction from the previous target of $2.00.

In other recent news, Blink Charging Co. reported its first-quarter 2025 earnings, revealing a significant shortfall in both earnings per share and revenue forecasts. The company posted an adjusted EPS of -$0.18, missing the anticipated -$0.1346, while revenue came in at $20.8 million, below the expected $30.76 million. Despite these setbacks, Blink Charging experienced a 29.2% increase in service revenues year-over-year. Meanwhile, the company has announced a strategic restructuring plan, which includes a 20% workforce reduction intended to save over $11 million annually, as part of its BlinkForward strategy.

Additionally, Blink Charging has extended the merger agreement terms with its subsidiary, Envoy Technologies, pushing the deadline for a public listing to September 2, 2025. H.C. Wainwright analyst Sameer Joshi has adjusted the price target for Blink Charging to $5.00 from $8.00, citing a 69.5% year-over-year decline in product sales. However, the analyst maintained a Buy rating, expressing optimism about the company’s strategic direction. Stifel analysts have maintained a Hold rating with a $2.00 price target, expressing caution about the company’s near-term growth prospects due to macroeconomic conditions.

Despite the challenges, Blink Charging has managed to reduce its operating expenses by 8% year-over-year. The company expects sequential revenue growth in the second quarter and aims for continued increases in service revenue throughout the year. Blink Charging is also focused on reaching adjusted EBITDA profitability and executing its BlinkForward strategic plan.

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